Bisnis.com, NUSA DUA — Decreasing the cost of remittances or foreign exchange transfers will be promoted as one of the main issues at the civil society group conference, Civil 20 or C20. The reduction in remittance fees is considered to be able to support the welfare of migrant workers. Sherpa C20 Indonesia who also serves as Executive Director of The Prakarsa Ah Maftuchan explained that the cost of remittances is an issue of interest to developing countries in the G20. Therefore, Indonesia's role as the G20 Presidency is very important to push this issue. Currently the average cost of remittances globally is 6 per cent, with some countries having very high fees, such as Australia's 12 per cent. Maftuchan considers that the cost is quite burdensome for developing countries, especially for migrant workers.
“We ask for a maximum of 3 percent of the cost of sending remittances for migrant workers abroad. Later this can apply globally, workers from other countries can also follow this consensus," said Maftuchan after the C20 kick off ceremony & meeting in Bali, Monday (7/3/2022) evening.
According to him, lower remittance costs can make workers have more funds so they can channel them to families in their home countries. In addition, when a migrant worker returns to his hometown, he will have more funds for productive activities.
Maftuchan also explained that the 3 percent remittance fee, according to C20's request, had actually become a common understanding at the United Nations (UN), especially on the SDGs. Unfortunately, the realization has not been optimal.
According to him, it is important for G20 countries to realize the proposal for reducing remittance costs which was discussed earlier at the C20 forum. This is so that the G20 carries out their commitment to the UN agreement, namely the cost of remittances to 3 percent.
"The G20 is a consensus, a gentle agreement, because this is a limited group, so if you don't do it, you will be ashamed. That's roughly where it's going [why C20 pushed the cost of remittances down],” said Maftuchan.
Sumber: Bisnis.com
